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Management Essay

Below is an essay on "Management" from Anti Essays, your source for research papers, essays, and term paper examples.

International Case : The Restructuring of Daimler-Benz
In a 1996 address to stockholders and friends of Daimler-Benz, the
CEO Jurgen Schrempp reviewed the position of the diversified
company. He started by saying, “1995 was a dram-atic year in the
history of Daimler-Benz.” It was also a year that the Board of
Management made a major break with the past.
Daimler-Benz, with more than 300,000 employees worldwide,
consists of four major groups. First, by far the biggest and most
successful group is Mercedes – Benz with about 200.000 employees. It
is best known for its passenger cars and commercial vehicles. Second,
the AEG Daimler-Benz Industries is in the business of rail systems,
microelectronics, heavy Diesel engines, energy systems technology,
and automation. Third, the Aerospace Group is in the aircraft
business (the company has more than one – third interest in the
Airbus consortium), space systems, defense and civil systems, and
propulsion systems. Fourth, the Inter Services (Debis) Group consists
of “systemshaus,” financial services, insurance brokerage, trading,
marketing services, mobile communications services, and real estate
management.
The company went through various development phases. From
1985 to 1990, Daimler Benz diversified into aerospace and electrical
engineering. The aim was to become an integrated high-technology
group. This diversification was further consolidated in the next phase
that extended from 1990 to 1995. Under the new leadership of Jurgen
Schrempp The core business was redefined and the strategy refocused.
A 1995-1996 portfolio review showed the need for refocusing on
what the company could do best. Top management reevaluated its
strategies and its core businesses based on economic criteria and the
strategic fit of the various activities. It became clear that company’s
strengths were in car manufacturing the truck business, and the
reailroad sector. Mercedes-Benz , for example , had a strong
competitive...